BTC had some kind of attempt to bounce back from our monitored key level last night, but at night it all went wrong again. In other words, sales pressure is beginning to appear at the current level. But we must be equally interested in BTC dominance, which in turn looks like a rebound from that strong support. In addition, the reflection would make sense when the dominance has been squatting there since perhaps the beginning of December.
When we look at BTC dominance, it is clearly preparing for another attempt at rebound. It is true that in the last few weeks there have been two attempts that have not been very successful. But it has to come out one day, so I wouldn’t take the risk lightly.
At the same time, BTC’s dominance and exchange rate are holding on to key supports. When dominance is ready for growth, it can be implied that BTC expects a more dynamic development. Of course, this includes a possible breakthrough of the 42,000 USD.
Current situation at 4H BTC / USD
As can be seen from the intraday chart, the BTC exchange rate failed or tested the medium-term trend diagonal, and retailers have already shown their strength. They pushed the course back into the support zone. So far, there has been no breakthrough and the inertia of the decline in the exchange rate is quite modest. However, if the exchange rate is clearly supported, the market situation is risky.
So we’ll see if BTC goes for a new candlestick like it did on January 10th. In any case, it is clear from the market that the initiative is still held by the supply side. The sellers have clear control of the market. That can change quickly, of course, but we have to see it for ourselves. For a start, impulse growth is sufficient for the medium-term resistance diagonal.